Bank Danamon Facilitates IDR 2 Trillion Worth of Financing to PT Bio Farma for Covid-19 Vaccine

Bank Danamon plays an active role in supporting the government fight the Covid-19 pandemic to help accelerate national economic recovery.


Jakarta, February 17 2021. PT Bank Danamon Indonesia Tbk (“Bank Danamon”) announced a sharia financing partnership with PT Bio Farma valued at Rp1.5 trillion to purchase raw and supporting materials for the production of Covid-19 vaccines. The signing of this latest financing facility agreement follows previous financing through conventional facilities amounting to Rp500 billion last September. The signing ceremonies for this continuing partnership was attended by Danamon Sharia Director Herry Hykmanto and PT Bio Farma Finance and Business Partnership Director I Gusti Ngurah Suharta Wijaya at Equity Tower, SCBD Area, South Jakarta last Wednesday, 10 February 2021.

"Combatting the Covid-19 pandemic requires strong synergy among various parties. With this partnership, Bank Danamon is honored to actively contribute to the fight against Covid-19 in Indonesia. We hope that this collaboration will have a positive impact on the community and support the government’s efforts to accelerate national economic recovery,” said Danamon Sharia Director Herry Hykmanto.

The Rp1.5 trillion Bank Danamon financing was facilitated by its Sharia Business Unit (UUS). Under the scheme, Bank Danamon will disburse sharia financing to PT Bio Farma with sharia omnibus trade financing facilities consisting of Sharia OAF (Open Account Financing) Buyers with Mudharabah contracts, Sharia Letter of Credit (LC) SKBDN with Kafalah bil Ujrah contract, and Sharia FATR (Financing Against Trust Receipt) with Mudharabah contract. The Rp1.5 trillion completes initial facilitation of financing amounting to Rp500 billion obtained through conventional facilities.

As part of efforts to overcome Indonesia’s COVID-19 pandemic, the government through PT Bio Farma (Persero) aimed to meet local vaccine needs by preparing as many as 15 million bulk vaccines during the first phase in 2021. The mandate for the procurement of Bio Farma’s COVID-19 vaccines is based on Presidential Decree No. 99 dated 6 October 2020 and the Decree of the Minister of Health No. 28 dated 22 October 2020. The government has targeted 181.5 million citizens to receive the new coronavirus vaccine from January 2021 to March 2022. To achieve the goal of inoculating 181 million citizens, the government requires approximately 426 million doses of the coronavirus vaccine.

This financing partnership represents Bank Danamon's active role in helping the government fight the Covid-19 pandemic. Previously, Bank Danamon also collaborated with BNPB and BP Jamsostek to distribute insurance to 10,000 Covid-19 volunteers in coordination with BNPB. The bank also donated food supplies to Grab and Gojek online drivers through BenihBaik and Anak Bangsa Bisa Foundation (YABB), and assisted Japan-based Indonesian students to overcome economic difficulties through a 100 million yen (equivalent to 14 billion rupiah) donation supported by the parent company MUFG Bank and the Embassy of the Republic of Indonesia in Tokyo.